Insurance to Protect Your Business

4. More Specialised Risks

There are other risks that should be covered if they pose a threat to your business. These can be bought individually or added to existing packages. Check if these could apply to you before finalising your insurance arrangements.

4.1 Public liability insurance covers damages payments and any legal costs to members of the public for death, bodily injury or damage to their property which is caused by your business activities.

• Consider the maximum claims that could be made against you when buying cover, as awards for serious injury can exceed £1 million. Standard policies provide between £1 million and £5 million cover, but more can be negotiated.

4.2 Product liability insurance is useful if you make, sell or repair products. You could be held liable for damage or injury caused by defects in your products' design or manufacture, even if you have not been negligent.

• Product liability cover is often included with public liability insurance.

4.3 Credit insurance covers you against the risk of debtors becoming insolvent.

• You can choose to insure whole or partial turnover and may be able to insure selected accounts.
• Insurers will require you to carry at least 10% of the risk yourself.

4.4 Professional indemnity cover protects firms who give advice in a professional capacity (eg management or IT consultants).

• If you are proved to have been negligent, without cover, damages and costs can put you out of business or even bankrupt you.